Thank you, Nancy for that warm introduction. And thank you to Tammy and Susan for opening this important event.
It’s a pleasure to be here with AARP and the New York Fed, two key advocates in our efforts to increase funding for our nation’s underserved entrepreneurs – women, people of color and veterans, rural and low-moderate income communities, and startups.
Nancy and the AARP have been long-time partners of the SBA and have done so much to help support our encore entrepreneurs – who not only represent a sizable portion of the 30 million small businesses and innovative startups here in the U.S., but also are among the most successful.
And I know you’ll be hearing Claire Kramer-Mills in a few moments present the New York Fed’s latest data on the role technology played in the distribution of our PPP loans. The New York Fed’s Small Business Credit Surveys are crucial tools that help the SBA see how we’re doing and identify the gaps where we can better support our small businesses.
I’d also like to thank Tammy, Renee, Rhett and the whole team at Reimagine Main Street for putting together yet another great event, and for all that you do to support our nation’s small businesses.
And most importantly – to any small business owners with AARP and Reimagine Main Street – thank you for joining this conversation and learning about the people, the organizations and the programs that are here to help you survive and thrive. You are giants in our economy and my mission is to make sure that you’re elevated and treated as such across SBA’s programs.
Today’s topic hits at the heart of my top priority as SBA Administrator, ensuring anyone from anywhere can achieve the American dream of business ownership. And we know that in order to start a business, survive and recover fully from COVID-19, and take advantage of future growth opportunities, our businesses – especially our underserved small businesses – need capital.
While the SBA has a vast array of programs and services to help gain access to capital, markets and networks – those resources are only effective if they get into the hands of the small businesses that need them the most. So for our small businesses – connection to resources through trusted partners and platforms is key.
If we’re going to bridge the gaps that have stood between underserved entrepreneurs and opportunity for far too long –we need to meet our small businesses where they are instead of waiting for them to come to us.
Technology is an important tool in helping us make those connections.
Small businesses are increasingly using technology. Throughout the pandemic, many pivoted to sell their products online or reach their customers virtually.
According to studies by the Connected Council and Google during COVID, 85% of SMBs said the pandemic made them rethink their approach to digital tools and nearly 3 in 4 small businesses said they increased their use of digital tools. And, more than half of the small businesses surveyed said they plan to use more digital tools post-COVID.
If the small businesses we serve are using technology, the SBA must pivot and adapt to find them where they’re already doing business.
We did this with the Restaurant Revitalization Program -- meeting them at their point-of-sale vendors – Square, who I know is joining us today, as well as Aloha, Toast and Clover. We did this with the PPP, meeting them directly through their technology-enabled lenders.
We saw results. I’m proud to say that 2/3 or $18 billion of the 28.6 billion Restaurant Fund went to women, veterans and socially-economically disadvantaged businesses … and 96 percent of our PPP loans in 2021 went to businesses with 20 employees or less, with strong performance in our rural and LMI communities.
On PPP, our fintech partners helped us achieve that reach. We invested in technology to make it easier for them to become a PPP lender – and we hope to continue to maintain those relationships beyond PPP.
We need to build on these successes. At the SBA, we must be technology-forward in everything we do.
And we’re leveraging technology to help more of our smallest businesses get forgiveness for their PPP loans. We’re launching an easy-to-use and streamlined PPP Forgiveness Portal to allow those with loans of less than $150,000 to apply for forgiveness directly through the SBA.
We’re also improving the high-in-demand COVID Economic Injury Disaster Loan program – or EIDL– which is a strong recovery tool as it provides low-cost, long term funds with deferred payments. We’ve delivered more than 3.8 million loans, for a total of more than $226 billion, plus an additional $3.6 billion in the companion grants for highly impacted small businesses through the Targeted EIDL and Supplemental Targeted EIDL Advance programs.
But we know we can do better and get these programs out more swiftly – and be more customer-centric and technology forward for equity… so we’re modernizing our platform to create a more mobile-friendly experience and reach those underserved entrepreneurs who are increasingly relying on mobile technology. At the SBA, we also carry the big responsibility of protecting the public trust. So we’re creating this new mobile interface while continuing to aggressively weed out fraud, waste and abuse.
This is just the beginning. We need to do much more. And we know meeting small businesses where they are also means reaching those who are still stuck on the other side of the digital divide.
The Biden-Harris administration’s Build Back Better agenda will ensure that every household in America has access to reliable broadband service. President Biden has made this a top priority. So now is the moment to help our businesses get online. And until that happens we need to reach the small businesses without that access that need our help now.
Sometimes this can be as simple as creating online videos that aren’t so media-rich that they won’t download over slow, unreliable connections. Or finding ways for entrepreneurs without access to a printer or a scanner or good upload speeds to apply for a loan.
Other times it can be as complicated as helping them build that personal relationship with a local lender. Our CDFI, MDI and microlender partners are crucial in this effort – as will be our Community Navigators -- along with our vast network of district offices and resource partners that offer free technical assistance, counseling and so much more.
We need to meet our small businesses where they are. And in order to do that, we must also understand their challenges and opportunities by looking at how they’re operating, their financial picture and more.
Across every program and service we offer, I’ve directed my staff to be as entrepreneurial as the entrepreneurs we serve and put our customers – America’s small businesses – first.
This will help us build bridges to those who have historically been left behind– so that we can create a more equitable economy. We need to invest in these highly entrepreneurial communities to see our economy thrive.
Strengthening our ecosystem for small businesses, will better position us to ensure this next stage of recovery helps all our small businesses access the opportunities that will be available through the Bipartisan Infrastructure Framework and President Biden’s Build Back Better agenda -- with unprecedented investments in infrastructure, manufacturing, R&D, innovation, supply chains and climate -- to reimagine our future economy.
Because as President Biden has said, we can’t just return to where we were before the pandemic – we need to build our country and economy back better.
America’s small businesses are up to the task, but we need to transform our offerings to give them the tools, so they can innovate, build, and adapt.
That’s what they do. That’s what the entrepreneurial spirit is all about.
Together, we can bring businesses back, create jobs, and equitably connect all entrepreneurs in America to the support they need to start, grow, and be resilient.